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Software Contracts are bad for everyone

mattwatson81

Getting Refreshed
Apr 10, 2009
334
10
First Name
Matt
Software contracts are bad for dealers and bad for vendors.

1. If the company sells your contract to a bank, what monthly revenue do they have to support you down the road?
2. What if you decide you don't like the software?
3. If you under contract what assurance do you have that their support will be up to par? You signed the contract, why do they care anymore?
4. Is their software so bad they expect you to cancel? Why do they have a contract?

Many vendors force dealers to sign contracts and then sell the contracts as a quick way to make cash. The problem for the vendors is they have no revenue to support the software they are selling long term.

If you are forced to sign a contract, make sure the company can't sell the contract off. You might end up calling a bank for CRM support.

Anyone have an contract horror stories they want to share?

I know a dealer that has a 25 year DMS contract. Talk about insanity!
 
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